Japan Ferrous Scrap Price Increases for 2 Consecutive Months

Japanese ferrous scrap market price increased for 2 consecutive weeks. Japanese electric furnaces’ purchasing prices surged by 1,000 yen to 25,000 yen per tonne from last week when overseas buyers, mainly in China, raised offer price to Japanese exporters.

Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, raised the purchase price by 2,500 yen on October 31st and by 1,000 yen on November 6th. Other makers followed the hike in all Japan. The purchasing price by local makers is 24,000-25,000 yen per tonne around Tokyo and some pay as high as 25,500 yen. They raised the purchase price by 1,000 yen on November 6th.

The demand for ferrous scrap didn’t change around Tokyo but the supply is tighter by low shipment and high export. A dealer source said ferrous scrap price rose just temporarily when the market price for building materials dropped and the demand for domestic steel demand grows stagnant.

The purchasing price by local makers increased by 1,000 yen to 24,000-25,000 yen per tonne around Osaka to reflect Tokyo Steel Manufacturing’s hike on November 6th. A large dealer source said dealers’ shipment is low due to an anticipation of price fall in the market. Local makers may be forced to secure ferrous scrap by price hike or spot procurement. Some dealers expect the market price rose temporarily with low demand and say local makers may reduce the output if their award volume decreases.